PLANSPONSOR - August/September 2020 - 24

2020 PLAN SPONSOR OF THE YEAR WINNERS
Corporate 401(k) $25mm - $50mm
Bohannan Huston, Inc.
Albuquerque, New Mexico
B
ohannan Huston, Inc., helps employees
plan for the future beyond saving for retirement.
The civil and structural engineering firm
incorporates broad financial wellness education-from
budgeting for monthly expenses to
planning for health care costs-into its corporate
wellness program as one of its three pillars of
health: financial, emotional and physical.
Participants receive " LifePoints " for attendance
at and participation in events and activities.
They also receive points for meeting with their
financial adviser, as well as for participating in
non-retirement-related wellness activities such
as getting their roof inspected or having their
furnace or air conditioning serviced, to prevent
expensive problems later, explains Human
Resources (HR) Director Nancy Simutis.
They can earn up to $500 in bonus gift
cards a year through LifePoint accumulations.
" They've deployed a phenomenal educational
program, " says Ed Wagner, managing
director, SageView Advisory Group, in Irvine,
California, the plan's 3(21) fiduciary. " We're out
there doing one-on-ones [a] minimum four times
a year. They've really paid attention to making
sure the participant has support. "
A Warm Welcome
Each month, the sponsor sends SageView a list
of its new hires, and those workers are then
introduced to the financial services available
to them through SageView and Transamerica
Retirement Solutions LLC, recordkeeper to the
plan for 10 years.
Bohannan Huston's average employee
age is 45-so as employees prepare for retirement,
Wagner works with them on distribution
options. About 30% of accounts belong
to former employees who have left their
savings, says Ryan Pate, a client executive
from Transamerica in Denver, adding that the
company has little turnover.
Besides the SageView adviser visits,
Transamerica representatives visit at least once
24 PLANSPONSOR.COM August - September 2020
a quarter, providing Managed Advice account
services to employees, Simutis says.
Bohannan Huston pairs its extensive
education with plan design features that
encourage high participation such as automatic
enrollment of new employees at 4% and a 2%
annual automatic escalation rate up to 10%. The
company provides a generous match of 80%
of the first 10% of employee deferrals, with a
six-year graded vesting. The plan has a 98.9%
participation rate-higher than its industry
peers-and an average 10.2% deferral rate. The
average account balance is almost $145,000.
Meeting Room Decisions
The firm's investment committee meets with
SageView to discuss plan design, communication
and administration. Last year, Bohannan
Huston reduced recordkeeping fees from
15 basis points (bps) to 12 bps, and it pays
SageView on a flat-fee basis. " We believe that's
a best practice, " Wagner says.
From a regulatory perspective, Wagner
says, the committee ensures " the plan is on the
forefront of meeting all the regulatory requirements. "
During quarterly meetings, it discusses
any pertinent legislative updates and reviews
SageView's proprietary fund analysis to determine
whether to change certain funds.
Besides its 401(k) benefits, Bohannan
Huston makes a semiannual contribution to
health savings accounts (HSAs) of participants
in the high-deductible health plan (HDHP).
With the changing demographics of its workforce,
Simutis says, the company wants to
continue diversifying its benefit offerings with
options such as HSAs.
In total, the plan sponsor's efforts have
paid off: The deferral rate now exceeds 10%,
while participation has remained around 98%.
" Their savings and participation rates are
through the roof, " Pate says. " ... [the sponsor's]
continuous dedication and commitment over
time speaks volumes. " -CH
Kerry Davis, chief financial
officer, Bohannan Huston, Inc.
With the
changing
demographics
of its workforce,
Simutis says, the
company wants
to continue
diversifying its
benefit offerings
with options
such as HSAs.
Finalists
Ace Precision Machining
Corp.
Oconomowoc, Wisconsin
First State Bank
St. Clair Shores, Michigan
The SSI Group
Mobile, Alabama
Talcott Resolution Life, Inc.
Windsor, Connecticut
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PLANSPONSOR - August/September 2020

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